Azerbaijan put off the launch of Shah Deniz field development till 2016-2017. According to APA, State Oil Company of Azerbaijan (SOCAR) reported that the decision is conditioned by no final decision on transportation through this route.

Earlier, Azerbaijan already decided to shift field production from 2013-2014 to 2016. Consequently, this will question the construction of Nabucco pipeline. According to Reuters, it was done due to lack of possibility to export gas to Europe.

APA reports that presently Azerbaijan and Turkey hold active talks on gas rates, transportation costs, and volumes to be supplied from Turkey to Europe. Absence of Azerbaijan-Turkey agreement blocks the start of Nabucco main construction, aimed at reduction of Europe’s energy dependence on Russia. Azerbaijan wants to charge Turkey the gas market price of $120 for 1000 m³, Lenta.ru reports.

Nabucoo main construction was initially expected to launch in 2011, whereas first gas supplies – in 2014. However, in March end, EU Commissioner for Energy Guenther Oettinger stated that the pipeline will be put into operation in 2018.

All the necessary permissions for construction are obtained, though resource base for Nabucoo is yet unclear. Azerbaijan, Turkmenistan and Iran are considered sources for gas pipeline, however no document was signed.

Shah Deniz deposits are estimated at 1.2 trillion m³, whereas exploitation of the second stage – at $20 bn. At the early stage of field development, gas should be distributed between Azerbaijan, Georgia and Turkey. In 2010 Shah Deniz — I is expected to produce about 7.6 bn m³ of gas against 6.2 bn m³ in 2009.

A.G.